Prime Minister Philip Davis has declared frankly that Grand Bahama’s existing governance system must end. But as his government prepares to reshape Freeport’s decades-old arrangement, US Ambassador to the Bahamas Herschel Walker is warning that the transition must give investors greater certainty.
The emerging debate highlights a central challenge for the Davis administration: how to assert greater government control over Grand Bahama while protecting existing business commitments and maintaining investor confidence.
In a national address in Freeport on Wednesday night, Davis said the decision to change the governance structure was “non-negotiable,” although the details of how the transition will happen remain open to consultation.
The government wants to replace the current arrangement, established under the 1955 Hawksbill Creek Agreement, with a framework it says will strengthen democratic accountability, modernise regulation and extend development opportunities across the island.
Davis argued that the existing system gives the Grand Bahama Port Authority (GBPA) powers that should belong to an elected government.
“What does Independence mean, if it stops at the boundaries of the Port Area?” he asked, arguing that Grand Bahama should be governed under Bahamian law and in the interests of its people.
Washington’s concern: What happens to investors?
In an opinion piece published by The Tribune, Walker acknowledged that Grand Bahama needs better results and said American businesses have complained about overlapping approvals, unclear fees and slow decisions.
He added that the United States welcomes the goal of creating “one transparent process with one clear point of accountability.”
But Walker warned that the way reform is implemented matters as much as its objective.
Investors, he argued, need answers about whether existing licences, contracts and tax and duty arrangements will be honoured, who will determine fees, when changes will take effect and whether businesses and workers will have meaningful input.
“‘Changes are coming, details to follow’ is the most expensive message a government can send to anyone deciding where to put their capital,” Walker wrote.
He stressed that Washington was not asking the Bahamas to surrender its sovereign right to govern Grand Bahama or grant American companies special treatment. Instead, he called for existing commitments to be honoured, the legal framework and timeline to be published, and stakeholders to be consulted before decisions are finalised.
Can reform and certainty coexist?
Walker’s intervention puts the spotlight on whether the government can deliver its proposed reforms without creating uncertainty for businesses already operating under the existing system.
Davis has said lawful rights and obligations must be addressed, that the transition will be pursued through legal processes and that changes will not be applied retrospectively. His government has opened a six-month consultation period, running from November 1, 2026, to April 30, 2027.
The stakes extend beyond the government and the GBPA. Grand Bahama needs investment, jobs and sustainable growth, while residents need a governance system that is accountable to them.
It remains to be seen whether Davis can reshape the island’s governance on the government’s terms while giving investors the clarity Walker says they need.